ICT Outsourcing Definitions and Types

 Outsourcing is defined as a concept of contracting out part of the organization's business process to a third party that has the specific skills and services. The third party must have the skills needed by the organization so that the outcome of the outsourced job is as expected. Outsourcing can also be explained as the movement of one or many business functions of a company including its assets to an outside service provider who gives a defined service for an agreed duration of time and payment on a written agreement.


From these two definitions, we can see that outsourcing can be defined with the following characteristics:


1. A company transferring one or many business process to a third party.


2. A third party has the skills and services required for the business process.


3. Has an agreement or contract between the two parties on the price and expected outcome.


Types of Outsourcing


Outsourcing can be separated into two types, namely total outsourcing and selective outsourcing.


The first one is total outsourcing, where the IT budget being used to pay the external vendors is approximately 80% or more than the total. For outsourcing activities that only took less than 80% from the total IT budget, it will be called as selective outsourcing. It is named as 'selective' because the company will select only one or several IT functions to be outsourced to a third party.  If you have any questions concerning where and how to use Quality Training And Assessment Resources, you can make contact with us at our site.

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